C-store update - the battle for market share is on..

January 17, 2009 - Since acquiring UST the Philip Morris (PM) salesperson is now even more aggressive - young female African American - tells owner the UST sales force will only be handling returns. (UST is one of the few tobacco companies that will give credit for expired products). We wonder if Altria will reduce the size of UST's sales force like they did after the acquisition of John Middleton - Black&Mild Cigars. We know Altria Group Inc., expects to lay off 34 UST employees in mid-March, including two vice presidents and two senior vice presidents and close the UST Headquarters in Stamford, Connecticut, which employs 350, by the end of the year.

The PM rep looks over the checkout counter area and points out the signage she wants removed. Click on image below to enlarge - bullet-proof glass to the right of checkout counter to be removed: Camel SNUS display, Bailey's Cigarettes sign (upper right corner) and an American Spirit cigarettes sign (lower right corner). Once the store owner signed the PM Retail Leaders Agreement, PM has control of the area around the checkout counter.

The previous C-store update pointed out that PM will be reducing the price of UST's Copenhagen and Skoal Moist Snuff one dollar starting February 1, 2009.

Reynolds American/Conwood is responding by introducing two new flavors of Grizzly and having a special promotion patron gets a free lighter with purchase. Conwood's Kodiak, that competes at the premium moist snuff level with Altria/UST's Skoal and Copenhagen, price will be reduced one dollar.

Take a look at our Camel Snus sign with a digital display below - click on image to enlarge. The c-store owner asked the RJR salesperson if he needed the sign any longer. The salesman indicated the sign will no longer be used (e.g. sign specifies 20-pouches now each can has only 15-pouches) and the store owner could keep it.




We are predicting that the test marketing of SNUS products in the U.S. and Canada will fail. Tobacco companies were in agreement for SNUS to catch on and be a strong seller it's going to require more public awareness and education. But even programs to station a person in c-stores passing out coupons for a free can of Camel SNUS or flooding the market with free cans of Camel SNUS doesn''t seem to work.

Previous C-Store Update.
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American Lung Association - Annual Report: The State of Tobacco Control

January 17, 2009 - Convenience Store / Petroleum (CSP) Daily News - The State of Tobacco Control Anti-tobacco health group releases annual report..
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U.S. States Considering Tobacco Tax Increase..

January 17, 2009 - A number of states are facing shortfalls in their budgets for fiscal year 2009. Michael Leavitt, Secretary of Health and Human Services in the Bush Administration tells us, "Tobacco products are not safe and cannot be made safe and there is no medically established public health benefit associated with tobacco."

State governments should feel obligated to continue to raise the tax on cigarette products to convince smokers to quit, prevent people like youngsters from starting and to raise money to reduce the shortfall they will continue to experience. (States Need Quick Influx of Revenue – Think Tobacco Tax..; Tax the hell out of all tobacco products until they disappear..)


Illinois Also - Lawmaker wants smoke tax to go up, Kevin Lee, Springfield Bureau, The Times, 1/16/2009.

Mississippi Also - Advocates support new tax on cigarettes.

Kentucky Also - Kentucky considering increase in cigarette tax..; Cigarette Tax Increase Gets Support From Unlikely Source; Ky. governor hopeful lawmakers can balance budget.

Georgia Also - Georgia Lawmaker Proposes Cigarette Tax Increase; Fight to increase cigarette tax kicks off
Bill would hike price $1 a pack; congressional leaders want to cut spending instead.

Arkansas Also - Cigarette Tax Main Issue At Forum.

Other recent announcements: Virginia, South Carolina, Utah.
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Butt out of tobacco biz, N.C. pastors tell Burr..

January 16, 2009 - Four conservative religious leaders from North Carolina Thursday called on Sen. Richard Burr to drop his opposition to a tobacco regulation bill - Family Smoking Prevention and Tobacco Control Act - he blocked last year. The measure Burr opposes would let the Food and Drug Administration regulate cigarettes and tobacco products, possibly leading to better labeling and, the ministers say, almost certainly saving lives.

The legislation passed the U.S. House of Representatives with overwhelming support, but a threat from Senator Burr to block it and a veto threat from the White House helped stall it in the Senate. In fact, Senator Burr and the White House did the people a favor because the measure being considered was written with the wishes of Altria - Philip Morris in mind. As stated so clearly by Senator Michael B. Enzi (R-WY), "Poison peddlers shouldn’t get to decide how we as responsible legislators fight the war against their deadly products."

Rather than give the FDA the mission of regulating tobacco, Burr said the task should be given to other federal agencies. He said he was working on legislation that would put “a new regulatory map in place.”

The bill must be revised before moving forward in the Senate.

Reference: Butt out of tobacco biz, pastors tell Burr by Mark Binker, news-record.com, 1/16/2009.

Image - Richard Burr, senior U.S Senator from NC - Republican.
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U.S. Senate Committee Votes to Expand SCHIP..

January 16, 2009 - The U.S. Senate Finance Committee voted (12-7) on January 15, 2009, to expand the States Children's Health Insurance Program (SCHIP) to cover an additional four million uninsured children. The vote comes one day after the U.S. House of Representatives overwhelmingly supported similar legislation.

If the bill becomes law, it will be effective April 1, 2009, and assesses a floor stocks tax on all manufacturers, wholesalers and retailers for the tobacco products (except large cigars) in inventory on April 1, 2009, with the floor stocks payable by August 1, 2009.

The legislation lost support from some Republicans who had worked closely with Democrats on the issue in 2007 (SCHIP was passed and signed into law (original sponsor Senator Ted Kennedy) on August 5, 1997. The program was authorized for 10 years. Congress extended the program temporarily through March 31, 2009) Sen. Charles Grassley, R-Iowa, said the legislation this time failed to include provisions from two years ago designed to keep higher-income families out of the program.

The program is designed to provide health care to children in families unable to afford health insurance but who earn too much to qualify for the Medicaid health care program for the poor.

Tax increase on tobacco products.

More on SCHIP history..

References: Children's health debate moves to Senate by KEVIN FREKING - Associated Press Writer, 1/15/2009; House Passes 2009 SCHIP Bill Senate expected to move quickly; legislation to be paid for with tobacco hike, Convenience Store/Petroleum (CSP) Daily News, 1/15/2009.

Archive of Supporting Documentation: SCHIP Expansion approved by U.S. House of Representatives..; U.S. Congress gets ready to pass expansion of SCHIP..;
SCHIP expansion legislation time to try again..;
Congressional Democrats have scrapped plans for another vote on expansion of the SCHIP..
AWMA urges grassroots effort to defeat FDA tobacco regulation and SCHIP..
U.S. Federal tax increase on tobacco - try it again..
U.S. House fails to override SCHIP expansion veto..
Congress Sends An Extension of the SCHIP to President Bush..
Bush vetoes 2nd bill expanding the State Children's Health Insurance Program (SCHIP)...
Revised State Children's Health Insurance (S-CHIP) Bill..
Bush's SCHIP veto stands..
U.S. CONGRESS PASSES CHILDREN'S COVERAGE..
US edges closer to federal tax hike on tobacco products...
Lawmakers in Washington are working to reauthorize the State Children's Health Insurance Program (SCHIP) before it expires on September 30, 2007...



Click on image to enlarge.., image Kids for Saving Earth..
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